⚡️ At a Glance
V-Marc India Ltd, a SME-listed wires & cables manufacturer, has silently grown into a ₹900+ Cr revenue company with 49% PAT CAGR over 5 years. While the stock has 2x’ed in 1 year and posted ROE of 24.4%, promoter pledging (43.2%) and the recent CFO resignation add voltage to the risk side. A clean business—but a bit too much static?
1. 🎣 Hook – “Voltage High, But Are the Circuits Stable?”
In a world where cable brands go from “Ghar ka bijli safe hai” to IPL sponsorships, V-Marc has taken the silent SME route — quietly clocking ₹900+ Cr sales with double-digit EBITDA margins.
But wait: CFO just resigned, promoter pledging is 43%, and inventory is growing faster than your neighborhood WhatsApp scam.
So the real question: Is this Polycab-lite or a sparky trap?
2. 🔌 WTF Do They Even Do?
V-Marc manufactures and sells:
🧵 Wires & Cables:
- PVC/XLPE insulated, FRLS, HFFR, HRFR grade
- Single & multi-core
- Copper and aluminum conductor types
⚙️ Used in:
- Real estate
- Infrastructure
- Utilities
- Industrial setups
🧪 Product standards: IS, ASTM, BS, IEC
📍 Plants: Haridwar (Uttarakhand) + 1 more (expansion ongoing)
🌍 Customers: EPC contractors, real estate cos, govt orders
3. 💰 Financials – Profit, Margins, Growth, ROE
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 172 | 179 | 245 | 560 | 905 |
| EBITDA (₹ Cr) | 15 | 15 | 26 | 66 | 97 |
| EBITDA % | 9% | 9% | 11% | 12% | 11% |
| PAT (₹ Cr) | 6 | 5 | 10 | 27 | 36 |
| EPS (₹) | 3.5 | 2.2 | 4.6 | 11.8 | 14.8 |
| ROE | 16% | 13% | 18% | 29% | 24.4% |
📈 5-Year PAT CAGR: 49%
🚀 3-Year Revenue CAGR: 72%
These are growth numbers that scream “mid-cap in the making.”
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹343
- Market Cap: ₹837 Cr
- P/E: 23.2x
- P/B: 4.4x
🧮 Compared to peers:
- Polycab: 52x P/E
- KEI: 52x
- RR Kabel: 50x
- Dynamic Cables: 34x
- V-Marc: 23x
📉 Verdict: Reasonable if they keep growing at 30%+, but will investors ignore the pledged shares & governance flags?
5. 🔥 What’s Cooking – Triggers, Concerns, Drama
🍛 Positives:
- FY25 revenue growth = +61% YoY
- Margin stability at 11% despite input cost swings
- ROCE remains healthy at 26.3%
- Inventory days improved from 106 → 73
🧨 Red Flags:
- CFO Resigned (June 2025)
- Promoter Pledge: 43.2%
- Promoter Holding Dropped: 69.9% → 64.8% in 1 year
- No dividends = reinvested profits or cash crunch?
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 | FY25 |
|---|---|---|
| Equity | ₹23 Cr | ₹24 Cr |
| Reserves | ₹84 Cr | ₹165 Cr |
| Borrowings | ₹140 Cr | ₹175 Cr |
| D/E Ratio | ~1.4x | 1.1x |
😶🌫️ Not bankrupt, but debt has doubled in 2 years. Yet to see operating leverage play out in margins.
7. 💸 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| CFO | ₹48 Cr | ₹23 Cr |
| CFI | -₹60 Cr | -₹61 Cr |
| CFF | ₹12 Cr | ₹40 Cr |
🔥 Cash burn on expansion — but still net cash flow = marginally positive.
🧠 Expansion = capacity game, but must convert to earnings soon.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 26.3% |
| ROE | 24.4% |
| Debtor Days | 115 |
| Inventory Days | 73 |
| CCC | 85 Days |
| Working Capital Days | 76 |
⚡ Ratios have improved, and working capital stress has reduced since FY23.
But still not as lean as top-tier peers.
9. 🧾 P&L Breakdown – Show Me the Money
FY25:
- Revenue: ₹905 Cr
- EBITDA: ₹97 Cr
- PAT: ₹36 Cr
🎯 PAT margin = 4% → Modest but consistent.
For every ₹100 wire they sell, they keep ₹4.
Polycab? Keeps ₹8–9.
10. 🥊 Peer Comparison – Who Else is in the Game?
| Company | Sales (Cr) | PAT (Cr) | OPM | ROE | P/E |
|---|---|---|---|---|---|
| Polycab | 22,408 | 1,931 | 13.2% | 21.4% | 52x |
| KEI | 9,736 | 696 | 10.2% | 15.6% | 52.8x |
| RR Kabel | 7,618 | 303 | 6.4% | 15.2% | 50.6x |
| Dynamic Cables | 1,025 | 64.9 | 10.3% | 22.1% | 33.6x |
| V-Marc | 905 | 36 | 11.0% | 24.4% | 23.2x |
💬 Peer Verdict: Best ROE among mid-tier peers, but lacks scale. If they double sales again, valuation rerating likely.
11. 👀 Misc – Promoters, Shareholding, Gossip
| Holder | Sep ‘24 | Mar ‘25 |
|---|---|---|
| Promoters | 69.5% → | 64.87% |
| Public | 30.3% → | 34.97% |
| FIIs | 0.2% → | 0.16% |
🛑 Pledge Alert: 43.2% of promoter holding is encumbered.
📉 Shareholding dilution = red flag for serious investors.
12. 🧠 Fair Value Range – Time for The Maths
Let’s assume FY26 PAT = ₹50 Cr (growth of ~40%)
Valuation Range:
- P/E 20x = ₹1,000 Cr
- P/E 25x = ₹1,250 Cr
→ Shares = ~2.43 Cr
🎯 Fair Value/Share = ₹410 – ₹515
🧮 CMP = ₹343 → Upside Potential: 20%–50%
But only if promoter pledging doesn’t trip the circuit.
⚡ EduInvesting Verdict™
V-Marc has momentum, margins, and manufacturing muscle. But also:
- CFO walkouts
- Pledged promoters
- No dividend breadcrumbs
It’s like a well-designed circuit board: efficient, compact, but if one component fails — kaboom.
📦 High growth, yes.
⚠️ But governance ka fuse thoda loose hai.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: V-Marc India Ltd, SME Cable Stocks, FY25 Results VMarc, VMarc Financials Analysis, EduInvesting Stock Deep Dive, ROE vs PE in SME stocks, Promoter Pledging Risk India, Wires and Cables Stocks Comparison
